Wednesday, February 10, 2010

When as a country you spend yourself into oblivian you can only expect this kind of economic blackmail.

Military leaders in China called for the sale of U.S. debt securities on Monday, February 8, 2010 in response to arms sales recently made to Taiwan.

China's state-controlled media interviewed a group of senior Chinese military officers who are also telling Beijing's leaders to boost defense spending and expand force deployments. This is in retaliation for the Pentagon's announcement in January 2010 of the new $6.4 million arms package for Taiwan.

Some observers view any dumping of U.S. bonds as economic warfare. China presently holds nearly $800 billion worth of Treasury debt securities. The result would be to drive up interest rates and disrupt any U.S. economic recovery efforts.